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KTC reports net profit rise to Bt255 million, earning per share Bt0.99 and receivables Bt44.552 billion
Acquiring new customers, offering more privileges for those with good credit records and stimulating more spending incorporated into this year’s strategic focus.

    2012 net profit on track to Bt255 million as a result of restructuring and improved business process, focusing on internal unity and successful staff engagement

    Receivables reaches Bt44.552 billion from a total of 2.16 million accounts

    2013 business strategy involves acquiring new customers and retaining existing ones, launching high-value campaigns under the concept, “Happy Go Lucky,” offering more privileges to credit card members and personal loan customers, ensuring customer satisfaction as well as superior services, strengthening ‘one-stop’ access to online channel, and streamlining internal operations and human resources management for greater efficiency     

Krungthai Card (KTC) CEO Rathian Srimongkol said, “Overall, the consumer finance industry (credit cards and personal loans) in 2012 grew significantly from the same period of the previous year. There were 16.9 active credit cards, up 10.1%, with the total outstanding receivable of Bt261,553 billion, an increase by 14.3%. For personal loans, the total outstanding balance rose 17.9% to Bt251.549 billion, which was boosted by a 6.4% growth in the Thai economy.”

“According to the Bank of Thailand, the Thai economy is likely to grow further thanks to increasing domestic spending. The export sector will enjoy a positive growth and remain an economic driver with the help of the daily minimum wage rise to Bt300. These factors result in improved consumer purchasing power and domestic spending, encouraging a positive growth in the consumer finance industry,” commented Rathian.

He said, “Key drivers for KTC outstanding performance for 2012 with net profit of Bt255 million include, first of all, improvements in the debt collection process. By assigning all relevant business functions to perform their tasks directly, bad debt recoveries were significantly improved and non-performing loans (NPLs) as well as delinquency rates were noticeably reduced both in our credit card and personal loan businesses.”

“Secondly, improvements in contact center operations and the addition of an innovative online channel have enabled us to communicate with customers more effectively and on a timely basis. Additionally, the mission-based management approach that enables perfect collaborations between business critical functions has helped reduce our operational costs in the long run.”

“Besdies, our customer-centric offerings and campaigns initially launched in the last quarter of 2012 were truly phenomenal. Big campaigns, for instance, include ‘Exploring the Miracle of Gold with KTC’ from which KTC credit card and KTC Cash Revolve customers stood a chance to win 266 gold prizes worth totally Bt10 million, the introduction of a new credit card called ‘KTC-KTB Precious Plus VISA Infinite’ to optimise exclusive customer benefits for those who deserve, 50% discount on interest rate for new revolving loan customers, the launch of ‘KTC Debt Clearance’ deal as a New Year gift for lucky revolving loan customers, and the ‘Big Bike Leasing Plan’ as an exclusive package for KTC member.”

“More importantly, we are working actively on building KTC as a knowledge-based society in a bid to develop our people and a corporate culture that genuinely supports collaborations,” said Rathian.
The last quarter ended 31 December 2012, the company reported strong asset base of Bt49.138 billion. Net receivables rose 4% from the previous year to Bt44.552 billion. The customer base reached 2.16 million accounts consisting of 1,528,921 cards with a total outstanding balance of Bt32.09 billion. The KTC personal loan unit served 626,326 accounts with a total KTC Cash outstanding balance of Bt12.182 billion.

“For 2012, our revenues grew from Bt12.497 billion in 2011 to Bt12.622 billion. Interest incomes (inclusive of usage fee), fees and other incomes surged to Bt7.954, Bt3.269 and Bt1.399 billion respectively, which account for 63%, 26% and 11% of the total revenues respectively.

Other sources of income, roughly 85%, came from bad debt recoveries. Total expenses (before tax) dipped 15% from Bt14.094 to Bt12.038 billion as a result of decreasing bad debt and doubtful accounts, which dropped by 37% or Bt2.08 billion.  

The Operating Cost to Income Ratio for 2011 was down from 34% to 30% in 2012. In 2012, Bad Debt and Doubtful Accounts totaled Bt3.475 billion, down from Bt5.611 billion the previous year, thanks to improvements in debt quality lowering the need to set a substantial amount of allowance for doubtful accounts.

“At the end of 2012, the company maintained available credit line of Bt23.04 billion, while net interest margin dropped from 13.6% to 13.2% due to reclining interest income from the credit card business. Despite the fact that total outstanding accounts increased during the year end, most of them settled their payments in full amount as scheduled. Moreover, the company was able to control all the borrowing costs at 4.98%, slightly up from 4.94% of the year earlier. The company has also restructured its borrowing model, from a ratio of long-term to short-term borrowed amount at 79:21 in 2011 to 71:29 at the end of 2012. The debt to shareholders’ equity ratio for 2012 was at 8.47, lower than the bond covenant at the maximum D/E ratio of 10 times.”

Concerning the strategy for 2013, KTC will be focusing on acquiring new customer base by leveraging its customer insight and offering more creative and distinctive products and services that meet different needs of target consumers. This involves:

    Acquiring more credit card members by attaching a lot of importance to quantitative and qualitative growth and encouraging active credit card use

     Introducing worthwhile marketing campaigns that reach target audience by consolidating convenient points of contact for card members and business partners to interact and encouraging them to use services frequently and enjoy first-hand experience exclusively provided by points they earn

    Empowering personal loans by launching a series of high-value campaigns to help loyal customers and those with good credit records make the most of their KTC packages, and by creating more irresistible offers to attract new customers  

     Introducing ‘one-stop’ online communication channel to provide customers a higher level of convenience in their interactions and transactions, from shopping and booking hotel accommodations to planning a trip

    Building partnership with Krungthai Bank in order to create and provide customers with the best possible deals and exclusive privileges

    Streamlining contact center operations by adopting more effective training programmes to empower the KTC customer service task force as well as investing more in innovative business processes.    

For more information:

Public and Corporate Affairs Department, Krungthai Card Public Company Limited

Kandtharat      Chermchitphong         Tel.  0-2828-5057

Suchada          Weerasakulrak            Tel.  0-2828-5732       

Fax. 0-2828-5046       e-mail:

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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






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